In the last year, Native American tribes have played an increasingly important role in the legal cannabis industry across the U.S.
As of April, tribal communities operate 77 marijuana stores across nine different states. This marks a 24% increase from 2024, showing that cannabis remains an important avenue for economic development. These shops are run by 59 federally recognized tribes, up 18% from 2024.
On average, tribal cannabis stores are around 4,600 square feet, but they range widely in size, from compact shops under 1,000 square feet to expansive facilities over 10,000 square feet.
Over 80% of the tribes that run cannabis stores also manage casinos, and more than a third of them are situated near a tribal gaming facility.
Tribes operate under their own sovereign laws, which means their cannabis regulations may differ from those of the surrounding state. In some instances, tribal laws are more restrictive; in others, they allow cannabis where the state does not.
For instance, in North Carolina where cannabis remains illegal under state law, the Eastern Band of Cherokee Indians has opened the state’s only legal marijuana store—The Great Smoky Cannabis Co.—offering adult-use cannabis under tribal jurisdiction. Similarly, Washington leads the country in tribal cannabis retail with 25 stores operated by 18 tribes. California has overtaken Nevada as the second-largest hub for tribal cannabis businesses, boasting 15 stores run by 12 tribes.
New York and Minnesota have seen a burst of activity, largely because of delays in state-level licensing. With few or no licensed dispensaries available, consumers in these states have turned to tribally owned stores. These businesses have stepped in to meet demand, offering legal alternatives to the illicit market. In Minnesota, for instance, tribal dispensaries are currently the only legal option for recreational cannabis buyers.
Beyond retail, the tribes are also building out cultivation and manufacturing operations. Some of these are fully integrated businesses like Great Smoky Cannabis Co., while others focus on one part of the supply chain. In Minnesota, the Mille Lacs Band of Ojibwe is concentrating on developing a large-scale cultivation facility, while White Earth Nation has sold surplus product to other tribal stores and signed a deal to open up to eight more outlets.
Some tribes have taken another approach by licensing individual tribal members to operate marijuana businesses. New York’s Saint Regis Mohawk Tribe has approved over 20 marijuana retailers.
With more tribes entering the market, expanding operations, and forming strategic partnerships, tribal involvement in cannabis is expected to grow significantly in the coming year.
The reform movement and cannabis firms like SNDL Inc. (NASDAQ: SNDL) are likely to applaud the contribution of native tribes in helping to provide legal marijuana products in different communities and thereby preventing the population from depending on products supplied by black market actors.
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